Does cultural economics affect country’s competitiveness?

Abstract

This study investigates the impact of financial attitude, satisfaction, and socialization on financial management behaviour among young adults, with a focus on the moderating role of financial efficacy. Drawing on social cognitive theory, the research explores how psychological and social factors shape financial behaviour in emerging adults. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that financial attitude, satisfaction, and socialization significantly influence financial management behaviour. Furthermore, financial efficacy significantly moderates the relationship between financial attitude and behaviour, amplifying the effect for those with higher efficacy. However, no moderating effects were observed for financial satisfaction or socialization. These results underscore the importance of fostering financial efficacy and positive financial attitudes in promoting responsible financial practices among young adults. The study offers theoretical and practical insights for designing targeted financial education initiatives that go beyond knowledge-building to include confidence and behavioural reinforcement.

Keyword : Financial efficacy; Partial Least Squares Structural Equation Modelling (PLS-SEM), financial behaviour, financial attitude, socialization